SINGAPORE – May 17, 2024 –
The ongoing Wazirx restructuring, designed to reimburse users impacted by a 2024 hack, has stalled due to court delays. Affected creditors approved the scheme, but the Singapore High Court has requested additional documentation, postponing its final decision. This follows a period where Wazirx’s scheme aimed to address the aftermath of the hack.Sources within the exchange remain optimistic, but users are increasingly concerned; further updates are expected.
Wazirx Restructuring Faces Court Delay Amidst User Frustration
restructuring Scheme Stalls in Singapore Court
Wazirx’s proposed restructuring scheme, aimed at compensating users affected by a significant hack last July, has hit a snag. Teh exchange recently concluded customer voting, with a majority of creditors approving the proposal. Though, the Singapore High Court has postponed its final decision, requesting additional documentation from Wazirx and its parent company, Zetta. This delay has sparked frustration among creditors eager to recoup their losses.
User Backlash on Social Media
Following the declaration of the court’s postponement, Wazirx took to X, formerly known as Twitter, to explain the situation. The response from creditors was far from positive, with many expressing sharp criticism. One user, VSM (@Range_13), voiced their discontent:
If you want to repay the money…. Why is a court permit? … If you don’t want to repay … You deny… Why are you going around and round? How can you alive our money with you… There is some shame .. the comment section is also disabled .. why? https://t.co/bh5niezgh8
– VSM (@Range_13) May 16, 2025
Despite the criticism,Wazirx maintains that they are doing their best to make it possible according to an effective scheme.
Moratorium Extended, Providing Temporary Relief
The Singapore Court has extended its moratorium cover to Wazirx and Zetta until June 6.A moratorium provides legal protection, allowing debtors to postpone payments to creditors and shielding them from new legal actions. Zetta, the Singapore-based parent company of Wazirx, initially applied for a 30-day moratorium in August 2024. This has now been extended into June.
Restructuring Scheme Details
Last month, Wazirx reported that 93% of creditors voted in favor of its proposed restructuring scheme. This scheme involves issuing traded recovery tokens (RT) and distributing recovery funds through RT buying mechanisms. Zetta reported that 141,476 creditors participated in the voting process, claiming more than $195 million (approximately Rs. 1,673 crore).
Timeline and Expectations
Wazirx had stated that the distribution of RT tokens would commence within seven business days of receiving approval from the Singapore Court.However, creditors will now have to wait until at least June 6 for a resolution.
Background: The July 2024 Hack
On July 18, 2024, Wazirx suffered a significant security breach, with hackers targeting a multi-signature wallet managed by Liminal Custody. The hack resulted in the theft of $230 million (approximately Rs.1,900 Crore). Investigative reports pointed to North Korean hackers as the perpetrators. Despite launching a white hat initiative, the exchange has yet to recover the stolen funds.
Did You Know?
Multi-signature wallets require multiple private keys to authorize a transaction, adding an extra layer of security. However, if these keys are compromised, the wallet becomes vulnerable.
Pro Tip
When investing in cryptocurrency, diversify your holdings across multiple exchanges and wallets to minimize risk. Always enable two-factor authentication for added security.
